Offshore biz emerges fast

Offshore biz emerges fast

Offshore plant projects are emerging fast as a new growth engine in Korea's shipbuilding industry. Total new order target of Korea's big seven shipyards, including Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, Samsung Heavy Industries and STX Offshore & Shipbuilding, is estimated at $50.9bn by a 35% increase on $37.6bn from last year.

Those shipyards have lifted their new order target of the offshore plant sector  as they expect increasing new orders for offshore plants this year. In particular, Samsung seems most active in enhancing the offshore plant business. Samsung won $3.77bn of new orders in the offshore plant sector, which corresponds to 38.7% of its entire new order values of $9.73bn of last year.

Therefore, it has decided to focus on the offshore business this year, aiming to win 70% of new orders in the offshore plant sector out of its entire new order target of $11.5bn. Meanwhile, Hyundai is looking to hit $19.8bn in the shipbuilding and offshore plant sectors out of its whole new order target of $26.6bn this year by a 87% increase on $10.6bn from last year.

Actually Hyundai saw better results in the offshore sector than in the shipbuilding, hitting $5bn of new orders out of its total last year. Hyundai's business structure is moving to offshore plant-centered new orders.

Daewoo has set its new order target to $6bn in the offshore plant sector and to $5bn in the shipbuilding sector, totaling $11bn. Nam Sang-tae, president of Daewoo, has recently revealed, "we will carry out new order activities mainly centering on drillships and oil jack-up rigs. Thanks to continuously increasing oil prices, the offshore plant business would enjoy boom this year."

Daewoo won overall 10 units worth $5.24bn in the offshore plant sector including two semi-submarine drillships, one drillship, one FPSO, four TLPs, and two offshore pipe-laying vessels. STX has also upgraded its new order target for 2011 by 61.3% year-on-year to $5bn from $3.1bn of last year.

It is also planning to enhance the offshore plant business. STX signed a MOU with world-class engineering company, America's KBR, to collaborate in the offshore plant business in December last year. The company will also expand its offshore plant business through its affiliate STX OSV building PSVs, AHTSs and OSCVs.
                                                                                               source: Asiasis Daily News 

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Boxship market: Next peak to come

London-based BIMCO currently announced that the new orders from boxship owners were reduced by 21%, hitting 3.9mTEU. Considering serious oversupply, it seemed as good news. However, experts said Maersk would order 18,000TEU boxships soon, which might trigger new orders rising sharply. Experiencing financial crisis in 2009, the amount of boxship orders was rapidly decreased. According to BIMCO statistics, the delivery of newly-built boxships reached 1.3m TEU. The oversupply was reduced. In November of 2007, the orderbook took amazing 61% of global fleet while the figure dived at 28% at the end of last year, which was the lowest point since 2003. If the statistics showed it dived at normal level, it meant shipowners might re-consider purchasing new ships. Korean shipyards were always leading shipbuilding market by their high-quality products. Although Chinese shipbuilders did excellent jobs, it still had a long way to go. Last year, 53% of boxship orders were taken by Korean yards while China occupied 35%. The return of Taiwanese Evergreen was expected to push new orders higher. Evergreen ordered 20-unit 8,000TEU boxships from Koran Samsung in 3rd quarter of 2010. NOL also ordered ten-unit 8,400TEU boxships from Daewoo. The  nightmare of oversupply was likely to come as Maersk’s 18,000TEU boxship    order came out in near future. Published : February 1, 2011 Source: Asiasis

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Hyundai Heavy Wins $1.03 Billion Drillship Order

 Hyundai Heavy Wins $1.03 Billion Drillship Order

Hyundai Heavy Industries, has clinched a US$1.03 billion (KRW 1.14 trillion) order to build two new deepwater drillships for Noble Drilling Holding, LLC., a leading offshore drilling contractor for the oil and gas industry. The agreement also includes an option Noble Drilling can exercise to order two additional same class drillships.
The vessels, measuring 229 meters in length and 36 meters in width with a maximum drilling depth of 3.6 km, are scheduled to be delivered by September 2013.
Drillships Hyundai Heavy builds are equipped with a thruster canister. The canister, the housing for the thruster, helps to improve performance and efficiency because the ships don’t need to be drydocked for repairs. Instead, the thruster can be lifted onto the ship through the canister to allow access.
Along with the drillship Hyundai Heavy received early January from Diamond Offshore Drilling Inc., the company has won all the three deepwater drillships ordered in the global shipbuilding market so far this year.
Hyundai Heavy has been in the spotlight of global drillship market since the delivery of its first drillship Deepwater Champion to Transocean of USA in November 2010.

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Sungwon Pipe Announces New Contracts for 2011

 

Sungwon Pipe Announces New Contracts for 2011 Sungwon Pipe Co. Ltd., Korea's leading provider of stainless steel pipes, announced several newly signed development contracts for 2011, spanning various industries and sectors across domestic and international markets. Domestically, Samsung C&T Corporation has announced two projects which will require the use of Sungwon Pipe's stainless steel pipes in a semiconductor park project estimated to be worth a total of $8.5 million in annual sales revenues.  As previously announced, the Company has disclosed this agreement with Samsung for a duration of 18 years. In addition, Korea Gas Corporation (KOGAS), the world's largest liquefied natural gas (LNG) importer, has been enlisted by Samsung C&T Corporation for the Pyeongtaek LNG Terminal project, which is forecasted to generate stainless steel pipe sales of approximately $1 million for Sungwon Pipe. KOGAS's Samcheok LNG Terminal project is expected to generate stainless steel pipe sales of approximately $7.5 million for the Company. A major vendor of Samsung Electronics, Sebo Manufacturing Engineering Corp., the largest pipe and plumbing installation construction company in Korea, will be constructing a semiconductor factory for Samsung Electronics beginning in March 2011. This construction project is estimated at approximately $70 million, of which $30 million is expected to contribute to the Company's sales in stainless steel pipes. MS Metal Global Service, the wholly-owned subsidiary of the Company, has also been enlisted to collaborate on a desalination and power plant project with Doosan Heavy Industries & Construction Co. Ltd., with estimated sales revenue of $10 million for MS Metal. The project is expected to begin during the second half of 2011. On the international front, Sungwon Pipe has announced that it will supply stainless steel pipes for the construction of Vietnam's chemical fertilizer factory, expected to generate $60 million in revenues for 2011. Mr. Chung-Keun Kim, Chief Executive Officer of Sungwon Pipe stated, "As we begin 2011, we are very excited to have such a strong pipeline of sizeable projects so early on. This is a major undertaking for Sungwon Pipe to be increasingly involved in large infrastructure development projects throughout Korea as well as in emerging cities abroad.  We view these project announcements as a significant step in the Company's recently announced initiative to increase its international visibility and presence. As we move further along in 2011, we look forward to keeping our investors well-informed of more new and exciting developments to come." Sungwon Pipe Co., Ltd. is a Korea-based company that is primarily involved in the production and supply of stainless steel pipes used in different industrial applications. Sungwon Pipe Co. Ltd. is Korea's number one stainless steel pipe manufacturing company. In December 2009, it acquired stockist and distributor MS Metal, as a wholly-owned subsidiary to become Korea's first and largest total stainless steel pipe company. The Company's products are used in paper manufacturing, petrochemical industry, food processing, heat exchangers, industrial structural products and shipbuilding. Sungwon Pipe distributes its products in domestic markets and recently announced an initiative to focus on the overseas markets with current contracts in the United States and Middle East. The Company's major customers include Samsung, Hyundai and Daewoo. (PR Newswire)                   KOMEC QR CODE   /   KOMEC Blog QR CODE Global Brand A/S Hub of Marine Equipment

Wartsila expects better performance

Finnish engine maker Wartsila's bottom line of EUR 176m ($241.80m) for the fourth quarter of 2010 was down on the EUR 396m booked a year ago but smashed forecasts.

Having completed a cull of around 1,000 staff the company is expecting margins to improve in the year ahead, targeting an operating profit margin of between 10% and 14% from its previous figure of up to 7%.

Wartsila's new full-year 2011 sales target will increase 3% to 5% year-on-year.

Meanwhile, Wartsila revealed president and CEO Ole Johansson has decided to retire. Johansson, who turns 60 in June and has been with the company since 1975, will also step down as a director.


Published : January 31, 2011


 Source: Asiasis

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Sekwang resale for cancelled AHTS

Ulsan-based Sekwang Heavy Industries has finally clinched a resale contract with Singapore's Swire Pacific for the four AHTS vessels the yard is currently building.

The type of the quartet is Bollard Pull 200-ton class high performance AHTS originally ordered by Germany's Nordcapital in 2007. But the contract with German shipowner was canceled.

Amid the high oil prices increasing up to almost $100 per barrel, a number of shipowners showed their interest in the ditched quartet, but Swire suggested the highest price.

The newbuilding price is known to be the middle of $60m, which is a little higher than the market price.

Korean shipbuilder Sekwang has progressed workout procedures since last July due to a deterioration of its financial situations, but has ordinarily been building the high performance offshore supply vessels, such as Seismic Research Vessels (SRV) and AHTS by supports from its creditors including the Export-Import Bank of Korea.
Swire had ordered eight AHTSs at the yard once before in 2000.

The shipowner is said to be very satisfied with Sekwang-built ships, so has willingly come to sign the resale contract despite the yard's situation under the workout.


Published : January 31, 2011


Source: Asiasis

                      

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